State ban on schools for profit

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"We believe that schools should be established in the best
interests of the child, rather than for reasons of profit,"
Education Minister Lynne Kosky told The Age. "They really
have to have as their sole purpose the best interests of the
children."

The move comes after multimillionaire Eddy Groves, whose ABC
Learning is one of Australia's biggest child-care providers,
signalled his intention to expand into primary education.

As part of the expansion, Mr Groves indicated he would consider
opening Victoria's first for-profit primary school.

He has moved to establish a for-profit primary school near
Brisbane, but has faced Queensland Government opposition.

In May, legislation was introduced into the Queensland
Parliament preventing private companies receiving state taxpayer
funding if they intended to make a profit from running schools.
Federal laws already prevent Commonwealth funds being used to
support for-profit schools.

Under Victorian legislation, there is nothing to prevent a
for-profit school seeking registration. But Ms Kosky said the law
would be changed.

Mr Groves was unavailable for comment yesterday. In comments to
The Sunday Age late last year, he said the Queensland school
would be run by a non-profit company, Independent Colleges of
Australia, with ABC Learning providing services.

Ms Kosky's move also coincides with the publication of a paper
today arguing the case for for-profit education, in the journal of
the conservative Centre for Independent Studies.

In the paper, educator Ross Farrelly writes that it is difficult
to see how there is anything unethical about deriving a profit from
school education, when teaching is compared with medicine, law or
accountancy.

He argues that schools that operate for profit, and the
resulting competition in the education marketplace, will deliver
benefits that cannot be achieved by centralised government
control.

"Schools of excellence will flourish and expand, enabling access
to successful education for more families," he writes.

"Research and development into practical, effective teacher
training will be encouraged. Efficiency will be promoted,
bureaucracy minimised and parents will see a greater return for
their education dollar."

Mr Farrelly says much of the antagonism against for-profit
schools comes from "vested interests under threat and fear of the
unknown", rather than serious consideration of the welfare of
students.

He argues for leadership from policymakers to start welcoming
what he calls "edupreneurs".